Taking up the EMI moratorium is not a loan waiver of any kind. It is an EMI holiday where you wouldn’t have to pay your EMIs for a specified period of time. Availing the EMI moratorium might seem to be a good option at first as you wouldn’t have to pay your EMIs for that particular period. But the interest rates will accrue for the amounts that you haven’t paid during the moratorium period.
There will be interest levied on the loan for the period of EMI moratorium on the loan outstanding. This interest will be collected by extending the tenure period of the loan accordingly.Before applying for a moratorium it’s best to assess whether you definitely need an EMI holiday as your interest will continue to accrue. If you are not able to handle the EMIs, have the moratorium as a last resort as it might financially drain you later.
Additional Reading: RBI’s moratorium on EMIs: all you need to know